(Ohio) Qualified Energy Property Tax Exemption for Projects 250 kW or Less

Ohio’s Renewable and Advanced Energy Project Property Tax Exemption, enacted with the passage of Ohio S.B. 232 in the summer of 2010, exempts qualified energy projects in Ohio from public utility tangible personal property taxes and real property taxes*. Before passage of S.B. 232, a renewable energy facility in Ohio that sold electricity to a third-party was considered a “public utility” for tax purposes.

Per Ohio Revision Code 5709.53, qualified energy systems of 250 kilowatts (kW) or less will not be subject to the payment in lieu of property tax. For qualified energy projects larger than 250 kW, see the DSIRE entry Qualified Energy Property Tax Exemption for Projects over 250 kW (Payment in Lieu) for additional details.

Energy facilities with nameplate capacity of 250 kilowatts (kW) or less (AC) are permanently exempt from public utility tangible personal property tax and real property taxes. Energy facilities are defined as interconnected solar, wind, or other tangible property used to generate electricity. Under this law, the interconnection equipment, cables, devices, and the land (limited to up to 1/2 acre per wind turbine) are also exempt. Energy facilities built after January 1, 2010 are eligible for this treatment.

Visit the Ohio Development Services Agency’s web site for additional information, implementation documents and program documents.

*It should be noted that Ohio’s personal property taxes for general business filers have been phased out. See the Department of Taxation Property Tax – Tangible Personal Property fact sheet on this subject. It should be also noted that public utilities are not considered “general business filers” and public utility tangible personal property is still taxed.